CENTRAL INTELLIGENCE BULLETIN

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23 September 1956

"opy No*

105

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CURRENT

INTELLIGENCE

BULLETIN

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NEXT REVIEW DATE. *T==

OFFICE OF CURRENT INTELLIGENCE

CENTRAL INTELLIGENCE AGENCY

State Dept, review completed

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CONTENTS

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1. OUTCOME OF SECOND S UEZ CONFERENCE THREATENS
MOLLET GOVERNMENT

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5. BOLIVIAN GOVERNMENT DECLARES STATE O

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SIEGE

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23 Sept 56 Current Intelligence Bulletin Page 2

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1. OUTCOME OF SECOND SUEZ CONFERENCE THREATENS
MOLLET GOVERNMENT

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The American embassy in Paris reports
that the French public and government of-
ficials are disillusioned and discouraged
by the second London conference and now
believe the Only course open is referral of the Suez question
to the UN. The embassy expects the National Assembly to
hold a bitter and prolonged debate when it convenes on 2
October, with Suez likely to become the focal point of grow-
ing exasperation and frustration on a variety of problems.

The embassy emphasizes there is a worsen-
ing social climate as workers, farmers and business men be-
come increasingly antagonistic over price rises and wage
problems.

Comment Foreign Minister Pineau won grudging

cabinet support for the new Suez Canal
users’ association with the proviso that France maintain
freedom of action to refuse co-operation in any measures
it considers contrary to its essential interests. Premier
Mollet had received nearly unanimous non-Communist sup-
port in early August for his strong stand against Egyptian
nationalization of the canal, but he has been running into in-
creasing political opposition at home as France and the West
have avoided recourse to force.

Success for Nasr is likely to further
weaken France’s position in Algeria and Mollet may seek
more direct American and British support in North Africa.

23 Sept 56

Current Intelligence Bulletin

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5. BOLIVIAN GOVERNMENT DECLARES STATE OF SIEGE

The Bolivian government has declared
a state of siege as a result of civil di&-
orders in La Paz on 22 September, Anti-

government elements had organized a hunger

march and a crowd set fire to the progovernment newspaper
building and the government radio station. Other fires and
rioting reportedly resulted in eight deaths.

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The antigovernment action during the day
was reported led by Unzaga de la Vega, leader of the major
rightist opposition party, while disorders occurring on the
night of 22 September were directed by a member of a
leftist splinter party. The Communists were apparently not
involved.

Bolivia’s spiraling inflation — in which
the already high cost of living rose 17 percent between April
and June of this year — has been generally recognized as
the major problem facing the new government which took
office on 6 August. Although the government won over 80
percent of the total vote in last June's election, its chief
opposition polled about 40 percent of the vote in the inflation-
plagued urban areas, A monetary stabilization council, made
up of high-ranking Bolivian officials with an American adviser,
was recently set up.

No one of Bolivia's three armed groups--
the civilian militia, the carabineros, or the army -= appears
to have defected to the opposition. Consequently, the govern-
ment is believed capable of maintaining itself in power.

23 Sept 56 Current Intelligence Bulletin 25X1j9&g e 7

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